Under the Truth in Lending Act, which disclosure is required when financing the purchase of agricultural land with no residence?

• A. No disclosure because the land is agricultural - only applies to residential
• B. Full disclosure required regardless of property type
• C. Disclosure only if loan amount exceeds threshold
• D. Disclosure not required if the buyer is a business entity

Answer: (A)

Under Truth in Lending Act, disclosures are required for consumer credit secured by a dwelling. If the loan is for agricultural land with no residence, there is no dwelling securing the loan, so the transaction doesn’t fall under TILA’s dwelling-based disclosure requirements. That’s why no TILA disclosures are required in this case.

The other options miss this key point. Disclosure rules under TILA aren’t triggered merely by property type or loan amount; they hinge on the loan being secured by a dwelling used as a residence. The buyer’s business entity status doesn’t automatically create TILA disclosures either, because the dwelling factor is the determining element. If the land were later to include a residence or the loan were for a dwelling, TILA disclosures would apply.